TA: Bitcoin Downtrend Intact, Why The Bears Might Aim $32K

Bitcoin started a strong decline below the $37,500 support against the US Dollar. BTC even traded below $35,000 and might continue to move down towards $32,000.

• Bitcoin started a strong decline below the $36,500 and $35,500 levels.
• The price is now trading below $35,000 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $34,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might accelerate further lower below the $33,500 support zone in the near term.

Bitcoin price struggled to stay above the $36,000 support zone and extended downsides. BTC traded below the key $35,500 and $35,000 support levels to move further into a bearish zone.

There was a close below $35,000 and the 100 hourly simple moving average. The price even traded below the $34,000 level and traded to a new multi-week low at $33,700. It is now consolidating losses and showing bearish signs below $34,000.

On the upside, bitcoin price is now facing resistance near the $34,000 level.  The next key resistance could be near the $34,200 level. There is also a key bearish trend line forming with resistance near $34,200 on the hourly chart of the BTC/USD pair. The trend line is near the 23.6% Fib retracement level of the downward move from the $36,058 swing high to $33,700 low.

The main resistance is now forming near the $35,000 level. It is near the 50% Fib retracement level of the downward move from the $36,058 swing high to $33,700 low. To start a fresh increase, the price must settle above the $35,000 level.

If bitcoin fails to clear the $35,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $33,700 level.

The next major support is seen near the $33,500 level. A downside break below the $33,500 support might spark another sharp decline. The next major support could be $32,500. Any more losses might send the price towards the $32,000 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $33,500, followed by $32,000.

Major Resistance Levels – $34,000, $34,200 and $35,000.